Why does Berkshire Hathaway Inc sell its stock at a very high price?
What is the motive of a company to sell stocks at a very high price? Is it just to brag or is it the more elite people it wants to attact to invest in or they just don't like people buying their stock, if so then why become a publicly traded company if they wouldn't want to sell it?
- ALLLv 51 decade agoFavorite Answer
As Pierre said, Berkshire doesn't sell its stock - its sold between investors in the market. That said, Berkshire's policies make it very expensive. Unlike other successful companies like Walmart or Microsoft, Berkshire never splits the "A" share and never pays dividends. So, in addition to being wildly successful, its doesn't get diluted by issuing new shares and it doesn't slow growth by paying dividends.
By the way, it recently broke tradition and did split the "B" shares to make its acquisition of Burlington Railroad work. They currently sell for under $80 so anyone can own a piece of Berkshire.
- Pierre OLv 41 decade ago
Berkshire Hathaway does not sell any stock! The price of the Berkshire Hathaway stock is defined by what current shareholders want to get to sell their stock and what buyers are willing to pay to get the stock. B-H has nothing to do with this.
- exactdukeLv 71 decade ago
Makes it very hard (if not impossible) to short the stock.
if so then why become a publicly traded company if they wouldn't want to sell it?
When your company is run by the world's greatest investor, I DON'T THINK THAT'S A PROBLEM (selling the stock).
- Anonymous4 years ago
$124,499.99, plus $882 today. It hasn't been $5,000 since the 1990s.
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- 1 decade ago
The goal of any company is to make money. If somebody will gladly pay 100 dollars for your product, why charge them 50?